Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. silver company makes a product that is very popula

Silver Company makes a product that is very popular as a Mothers Day gift. Thus,...

80.2K

Verified Solution

Question

Accounting

Silver Company makes a product that is very popular as a Mothers Day gift. Thus, peak sales occur in May of each year, as shown in the companys sales budget for the second quarter given below:

April May June Total
Budgeted sales (all on account) $440,000 $640,000 $220,000 $1,300,000

From past experience, the company has learned that 30% of a months sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $370,000, and March sales totaled $400,000.

Required:

1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

2. What is the accounts receivable balance on June 30th?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

For main-group elements, are outer electron configurations similar or different within a group? Within a period?...

Chemistry
Q

STEEL STRUCTURES A 20ft long simply supported beam is made of W21X55 with fy=50ksi. The service distributed...

Civil Engineering
Q

How does technology affect your primary and secondary groups? Do you think it’s possible to have...

Psychology
Q

Falls from Same Level and Falls from Heights 300-500 discussion, Please do not Copy write (will...

Mechanical Engineering
Q

Find the solution of the following differential equations (x(x-1))dy-(xy+2x3-x2-2y)dx=0

Advance Math
Q

Name of the Student Note Tie up this paper to main answer sheet Instructions i...

Physics
Q

1. Brown exchanged stock in the Green Company held for investment purposes with an adjusted...

Accounting
Q

Required Information [The following Information applies to the questions displayed below.) The first production department...

Accounting
Q

Following are two income statements for Alexis Co. for the year ended December 31. The...

Accounting
Q

Beautiful, Inc. Balance Sheet December 31, 2018 425,621 $ 1,654,887 Cash Accounts Receivable Note Receivable...

Accounting
Q

Monitor Devices shows the following overhead information for the current period. ...

Accounting
Q

Llewelyn company pay the amount due on a purchase of merchandise on account Llewelyn uses...

Accounting